Albertsons Companies (ACI) AI Stock Analysis

• Market Cap: $12.25B
• Dividend Yield: 2.8%
• Average Volume (3M): 4.27M
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.06
• Revenue Growth: 1.46%
• EPS Growth: -26.54%
• Country: US
• Employees: 108,300
• Sector: Consumer Defensive
• Sector Strength: 70
• Industry: Grocery Stores
• EPS (TTM): 0.46
• Shares Outstanding: 575,749,900
• 10 Day Avg. Volume: 4,363,796
• 30 Day Avg. Volume: 4,269,714
• PEG Ratio: -0.45
• Price to Book (P/B): 6.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.52
• Enterprise Value/Market Cap: 2.07
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 1.17
• Enterprise Value/Ebitda: 1.67
• 1Y Price Target: $24.45
• Price Target Upside: 15.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 62 Neutral
• Price Target: $22.50 ▲(6.03%Upside)

Albertsons Companies' overall stock score is driven by a solid financial performance and fair valuation. However, technical indicators suggest bearish sentiment, and earnings call highlights challenges with margins and inflationary pressures.

Positive Factors

Business Performance

ACI’s ability to leverage its digital media capabilities, invest in new store openings and upgrades, and expand its loyalty program to drive accelerating growth in pharmacy and e-commerce sales and in-store traffic enable it to perform well.

Growth Initiatives

ACI will continue to drive growth through the ongoing investment of its cash flow in key growth initiatives, including enhanced digital and omnichannel capabilities combined with new store openings and upgrades, as well as enhancing shareholder returns through ongoing dividend increases and share repurchases.

Valuation

ACI may see valuation expansion from low levels as investors seek cheap, defensive stocks.

Negative Factors

Digital and Process Centralization

ACI remains at a discount given it is behind in digital and centralizing of processes.

Earnings Guidance

EPS guidance of $2.03-2.16 fell short of the $2.28 consensus and $2.30-ish market bar.

Investment Concerns

Concerns around an investment year proved to be correct, as EPS guidance fell short of the market bar.

Albertsons Companies Business Overview & Revenue Model

Company Description

Albertsons Companies, Inc. (ACI) is one of the largest food and drug retailers in the United States. The company operates across multiple sectors, primarily focusing on retail grocery and pharmacy services. Through its various well-known banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, and several others, the company offers a wide range of products such as groceries, fresh produce, and pharmacy services to its customers. With a strong presence in the retail sector, Albertsons Companies serves millions of customers across numerous store locations nationwide.

How the Company Makes Money

Albertsons Companies generates revenue through several key streams, primarily from the sale of groceries and pharmacy products. Its core revenue model is based on retail operations, where the company sells a wide array of products, including fresh produce, packaged foods, beverages, household goods, and health and beauty items. In addition to grocery sales, the company earns significant revenue from its in-store pharmacy services, which include prescription dispensing and health consultations. Albertsons also engages in strategic partnerships and loyalty programs, enhancing customer engagement and sales. The company's revenue model is supported by its extensive network of stores, robust supply chain, and strong brand recognition across its multiple banners.

Albertsons Companies Financial Statement Overview

Summary

Albertsons Companies demonstrates consistent revenue growth and strong cash flow performance, indicating effective management and operational efficiency. However, the high debt-to-equity ratio and declining EBIT and EBITDA margins present challenges in operational efficiency and financial leverage.

Income Statement

Albertsons Companies has demonstrated consistent revenue growth over the past few years, with a notable increase from $62.5 billion in 2020 to $79.2 billion in 2024. The gross profit margin has remained relatively stable, indicating effective cost management despite competitive pressures. Net profit margin has shown improvement, reflecting enhanced profitability. However, EBIT and EBITDA margins slightly declined in recent years, suggesting potential challenges in operational efficiency.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio, indicating significant leverage which could be a concern in a high-interest rate environment. However, there has been improvement in stockholders' equity over the years, enhancing financial stability. The equity ratio has been relatively low due to high liabilities, suggesting a need for cautious financial management.

Cash Flow

Albertsons shows strong cash flow performance with positive free cash flow over the years, indicating effective cash management and operational efficiency. The operating cash flow to net income ratio indicates robust cash generation relative to profit. The free cash flow growth rate has been positive, further supporting financial health and providing flexibility for future investments or debt reduction.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
80.39B	79.24B	77.65B	71.89B	69.69B
	Gross Profit
22.26B	20.43B	21.76B	20.72B	20.41B
	EBIT
1.55B	2.07B	2.31B	2.44B	1.62B
	EBITDA
4.10B	4.54B	4.80B	4.89B	3.79B
	Net Income Common Stockholders
958.60M	1.30B	1.51B	1.62B	850.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
293.60M	188.70M	455.80M	2.90B	1.72B
	Total Assets
26.76B	26.22B	26.17B	28.12B	26.60B
	Total Debt
14.18B	14.24B	14.96B	14.03B	14.47B
	Net Debt
13.89B	14.05B	14.51B	11.12B	12.75B
	Total Liabilities
23.37B	23.47B	24.56B	25.10B	25.27B
	Stockholders Equity
3.39B	2.75B	1.61B	3.02B	1.32B
Cash Flow		Free Cash Flow
749.40M	628.20M	700.00M	1.91B	2.27B
	Operating Cash Flow
2.68B	2.66B	2.85B	3.51B	3.90B
	Investing Cash Flow
-1.89B	-1.75B	-1.98B	-1.54B	-1.57B
	Financing Cash Flow
-684.10M	-1.18B	-3.37B	-789.50M	-1.04B

Albertsons Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACI, the sentiment is Negative. The current price of 21.22 is below the 20-day moving average (MA) of 21.75, below the 50-day MA of 21.75, and above the 200-day MA of 19.99, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 40.77 is Neutral, neither overbought nor oversold. The STOCH value of 25.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACI.

Albertsons Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFM	70 Outperform	$15.37B	35.55	35.74%	―	15.51%	53.77%
KR	69 Neutral	$43.03B	17.59	26.59%	1.97%	-1.94%	23.94%
Sector *	65 Neutral	$8.89B	14.91	4.67%	6.16%	3.60%	-2.89%
WMK	64 Neutral	$1.98B	18.53	7.54%	1.85%	1.76%	6.01%
ACI	62 Neutral	$12.25B	12.95	31.26%	2.80%	1.46%	-26.54%
IMKTA	61 Neutral	$1.12B	18.47	4.00%	1.09%	-7.79%	-64.85%
GO	60 Neutral	$1.29B	80.94	1.43%	―	10.37%	-73.84%

Albertsons Companies Corporate Events

Albertsons Companies Announces CEO Vivek Sankaran’s Retirement

Albertsons Companies announced the retirement of CEO Vivek Sankaran, effective May 1, 2025, with Susan Morris, the current Executive Vice President and Chief Operations Officer, set to succeed him. This transition is part of a comprehensive succession plan, with Morris bringing nearly 40 years of industry experience to the role, aiming to continue the company’s growth and strategic initiatives, including the ‘Customers for Life’ strategy.